Question 1

Exponential smoothing...

Accepted Answer

A) Works best for long-term forecasting 
B) Yields a mathematically optimal solution 
C) Assigns weights to past data that decay exponentially as the data gets older 
D) Cannot be adapted to handle trend 
A) Works best for long-term forecasting 
B) Yields a mathematically optimal solution 
C) Assigns weights to past data that decay exponentially as the data gets older 
D) Cannot be adapted to handle trend

Question 2

A major difference between forecast accuracy measures MAD and MSE is that MAD is influenced much more by large forecast errors than by small errors.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the three planning horizons used in forecasting and the types of decisions made in each.

Accepted Answer

The planning horizon is the length of ti

Question 4

Top managers use detailed forecasts of unit sales for individual products (e.g., brands and sizes) for decisions involving financial planning and for sizing and locating new facilities.

Accepted Answer

A) True 
 B)False

Question 5

Which is not true regarding simple exponential smoothing?

Accepted Answer

A) Small values of alpha ($\alpha$) place more emphasis on past data 
B) Larger values of alpha ($\alpha$) have the advantage of quickly adjusting the forecast 
C) If alpha ($\alpha$) equals zero, the forecast will never change 
D) If alpha ($\alpha$) equals one, the forecast will never change 
A) Small values of alpha ($\alpha$) place more emphasis on past data 
B) Larger values of alpha ($\alpha$) have the advantage of quickly adjusting the forecast 
C) If alpha ($\alpha$) equals zero, the forecast will never change 
D) If alpha ($\alpha$) equals one, the forecast will never change

Question 6

In forecasting, irregular variation that is explainable can normally be discarded.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a statistical method?

Accepted Answer

A) Delphi 
B) Exponential smoothing 
C) Moving average 
D) Linear regression 
A) Delphi 
B) Exponential smoothing 
C) Moving average 
D) Linear regression

Question 8

Explain the difference between a moving average and single exponential smoothing forecasting model.

Accepted Answer

A moving average (MA) forecast is an ave

Question 9

Single exponential smoothing is a forecasting technique that uses a weighted average of past time-series values to forecast the value of the time series in the next period.

Accepted Answer

A) True 
 B)False

Question 10

If single exponential smoothing is used and the time series has a negative trend, the forecast will

Accepted Answer

A) Lag 
B) Overshoot 
C) Be on target 
D) Have a MAD equal to zero 
A) Lag 
B) Overshoot 
C) Be on target 
D) Have a MAD equal to zero

Question 11

A Taiwan electronics company exports personal computers (PCs) to the U.S. Their PC sales (in thousands) over the past five years are given below.   
a.What is the regression equation if the company wants to predict sales?
b.What is the forecast for sales in year 6?

Accepted Answer

a. @#IMG-DLM& b.For

Question 12

All of the following are important concepts in forecasting except

Accepted Answer

A) Determining the planning horizon length. 
B) Determining the time bucket size (i.e., year, quarter, month, week, day, etc.). 
C) Using a smoothing constant of 0.1 in Delphi methods of forecasting. 
D) Identifying cyclical patterns. 
A) Determining the planning horizon length. 
B) Determining the time bucket size (i.e., year, quarter, month, week, day, etc.). 
C) Using a smoothing constant of 0.1 in Delphi methods of forecasting. 
D) Identifying cyclical patterns.

Question 13

In an exponential smoothing model, larger values of alpha place less emphasis on recent data and more on older data.

Accepted Answer

A) True 
 B)False

Question 14

Seasonal patterns can occur over the weeks during a month, over days during a week, or hours during a day.

Accepted Answer

A) True 
 B)False

Question 15

____ forecasts are needed to plan for facility expansion.

Accepted Answer

A) Long-range 
B) Intermediate-range 
C) Short-range 
D) Demand planning 
A) Long-range 
B) Intermediate-range 
C) Short-range 
D) Demand planning

Question 16

An R2 of 0.80 means

Accepted Answer

A) 80% of the variability in the independent variable is explained by the dependent variable 
B) 80% of the variability in the dependent variable is explained by the independent variable 
C) 80% of the variability in the dependent variable is not explained by the independent variable 
D) Multiple regression was used 
A) 80% of the variability in the independent variable is explained by the dependent variable 
B) 80% of the variability in the dependent variable is explained by the independent variable 
C) 80% of the variability in the dependent variable is not explained by the independent variable 
D) Multiple regression was used

Question 17

The smoothing constant, $\alpha$, used in the basic exponential smoothing model, can range in value from -1 to +1.

Accepted Answer

A) True 
 B)False

Question 18

The forecasting error measurement that is different in that the measurement scale factor is eliminated is

Accepted Answer

A) MSE 
B) MAD 
C) RMSE 
D) MAPE 
A) MSE 
B) MAD 
C) RMSE 
D) MAPE

Question 19

Which of the following does not fit with the Delphi method?

Accepted Answer

A) Group of experts 
B) Brought together as a group 
C) Process iterates until a consensus is reached 
D) Qualitative as well as numerical outputs 
A) Group of experts 
B) Brought together as a group 
C) Process iterates until a consensus is reached 
D) Qualitative as well as numerical outputs

Question 20

Repeatable periods of ups and downs over short periods of time are called ____.

Accepted Answer

A) Trends 
B) Seasonal patterns 
C) Cyclical patterns 
D) Irregular variation 
A) Trends 
B) Seasonal patterns 
C) Cyclical patterns 
D) Irregular variation

Exponential smoothing...

A major difference between forecast accuracy measures MAD and MSE is that MAD is influenced much more by large forecast errors than by small errors.

Discuss the three planning horizons used in forecasting and the types of decisions made in each.

Top managers use detailed forecasts of unit sales for individual products (e.g., brands and sizes) for decisions involving financial planning and for sizing and locating new facilities.

Which is not true regarding simple exponential smoothing?

In forecasting, irregular variation that is explainable can normally be discarded.

Which of the following is not a statistical method?

Explain the difference between a moving average and single exponential smoothing forecasting model.

Single exponential smoothing is a forecasting technique that uses a weighted average of past time-series values to forecast the value of the time series in the next period.

If single exponential smoothing is used and the time series has a negative trend, the forecast will

A Taiwan electronics company exports personal computers (PCs) to the U.S. Their PC sales (in thousands) over the past five years are given below. a.What is the regression equation if the company wants to predict sales? b.What is the forecast for sales in year 6?

All of the following are important concepts in forecasting except

In an exponential smoothing model, larger values of alpha place less emphasis on recent data and more on older data.

Seasonal patterns can occur over the weeks during a month, over days during a week, or hours during a day.

____ forecasts are needed to plan for facility expansion.

An R² of 0.80 means

The smoothing constant, $\alpha$ , used in the basic exponential smoothing model, can range in value from -1 to +1.

The forecasting error measurement that is different in that the measurement scale factor is eliminated is

Which of the following does not fit with the Delphi method?

Repeatable periods of ups and downs over short periods of time are called ____.

Goods, Services, and Operations Management

Value Chains

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Design

Supply Chain Design

Capacity Management

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Quality Control and Spc

Lean Operating Systems

Project Management

Filters

Exam 11: Forecasting and Demand Planning

Exponential smoothing...

A major difference between forecast accuracy measures MAD and MSE is that MAD is influenced much more by large forecast errors than by small errors.

Discuss the three planning horizons used in forecasting and the types of decisions made in each.

Top managers use detailed forecasts of unit sales for individual products (e.g., brands and sizes) for decisions involving financial planning and for sizing and locating new facilities.

Which is not true regarding simple exponential smoothing?

In forecasting, irregular variation that is explainable can normally be discarded.

Which of the following is not a statistical method?

Explain the difference between a moving average and single exponential smoothing forecasting model.

Single exponential smoothing is a forecasting technique that uses a weighted average of past time-series values to forecast the value of the time series in the next period.

If single exponential smoothing is used and the time series has a negative trend, the forecast will

A Taiwan electronics company exports personal computers (PCs) to the U.S. Their PC sales (in thousands) over the past five years are given below. a.What is the regression equation if the company wants to predict sales? b.What is the forecast for sales in year 6?

All of the following are important concepts in forecasting except

In an exponential smoothing model, larger values of alpha place less emphasis on recent data and more on older data.

Seasonal patterns can occur over the weeks during a month, over days during a week, or hours during a day.

____ forecasts are needed to plan for facility expansion.

An R2 of 0.80 means

The smoothing constant, α\alphaα , used in the basic exponential smoothing model, can range in value from -1 to +1.

The forecasting error measurement that is different in that the measurement scale factor is eliminated is

Which of the following does not fit with the Delphi method?

Repeatable periods of ups and downs over short periods of time are called ____.

Goods, Services, and Operations Management

Value Chains

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Design

Supply Chain Design

Capacity Management

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Quality Control and Spc

Lean Operating Systems

Project Management

Filters

An R² of 0.80 means

The smoothing constant, $\alpha$ , used in the basic exponential smoothing model, can range in value from -1 to +1.